Week 1	Financial Statements and Cash Flow
	Practice Problem Set #2
	Week 1 PPSet 2
#1	You have been given a comparative balance sheet for 2018 and 2017
	and the income statement for 2018
	Comparative Balance Sheet
		2017	2018
	Current Assets	2,205	$2,429
	Sales.		$4,507
	Net fixed assets	$7,344	$7,650
	Cost of Goods Sold.		$2,633
	Total Assets	$9,549	$10,079
	Gross Profit.		$1,864
	Depreciation		$952
	Current Liabilities	$1,003	$1,255
	Earnings before Interest and Taxes (EBIT)		$922
	Long Term Debt	$3,106	$2,085
	Interest Paid		$196
	Total Liabilities	$4,109	$3,340
	Earnings before Taxes (EBT)		$726
	Total Equity	$5,440	$6,739
	Taxes (21%)		$152
	Total Liabilities and Equity	$9,549	$10,079
	Net Income		$574
	Dividends Paid		$352
	Addition to Retained Earnings		$222
	Based upon the given income statement, What is the Operating Cash Flow (OCF) in 2018?
	A $1,100
	B $922
	C $1,722
	D $1,874
#2	You have been given a comparative balance sheet for 2018 and 2017 and the Income Statement for 2018.
	Comparative Balance Sheet
		2017	2018
	Current Assets	2,205	$2,429
	Sales.		$4,507
	Net fixed assets	$7,344	$7,650
	Cost of Goods Sold.		$2,633
	Total Assets	$9,549	$10,079
	Gross Profit.		$1,864
	Depreciation		$952
	Current Liabilities	$1,003	$1,255
	Earnings before Interest and Taxes (EBIT)		$922
	Long Term Debt	$3,106	$2,085
	Interest Paid		$196
	Total Liabilities	$4,109	$3,340
	Earnings before Taxes (EBT)		$726
	Total Equity	$5,440	$6,739
	Taxes (21%)		$152
	Total Liabilities and Equity	$9,549	$10,079
	Net Income		$574
	Dividends Paid		$352
	Addition to Retained Earnings		$222
	Find the Net Capital Spending (NCS) for the year by looking at the change in Fixed Assets.
	Make sure you remember to account for depreciation.
	What is the net capital spending in 2018?
	A $8,602
	B $306
	C $1,258
	D $8,296